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CIRCULAR No

CIRCULAR No. 08/2003/TT-BLDTBXH OF APRIL 8, 2003 GUIDING THE IMPLEMENTATION OF CONVALESCENCE AND HEALTH RESTORATION REGIME PRESCRIBED IN THE GOVERNMENT’S DECREE No. 01/2003/ND-CP OF JANUARY 9, 2003

Pursuant to the provisions in Clause 3, Article 1 of the Government’s Decree No. 01/2003/ND-CP of January 9, 2003 amending and supplementing a number of articles of the Regulation on Social Insurance, issued together with the Government’s Decree No. 12/CP of January 26, 1995;

After obtaining the opinions of the Ministry of Finance in Official Dispatch No. 2391 TC/HCSN of March 18, 2003, the Ministry of the Interior in Official Dispatch No. 323/BNV-TL of February 24, 2003, Vietnam Labor Confederation in Official Dispatch No. 411/CV-TLD of March 28, 2003, and of some concerned ministries and branches, the Ministry of Labor, War Invalids and Social Affairs hereby guides the implementation of the convalescence and health restoration regime as follows:

I. SUBJECTS OF APPLICATION

Entitled to convalescence and health restoration regime are laborers who are participating in compulsory social insurance specified in Clause 1, Article 1 of Decree No. 01/2003/ND-CP stated above, concretely as follows:

1. Laborers working under labor contracts of a term of full 3 months or more or labor contracts of indefinite term in the following enterprises, agencies and organizations (hereinafter called units for short):

a) Enterprises set up and operating under the Law on State Enterprises, including: production and business enterprises, public-utility enterprises; and enterprises of the armed forces;

b) Enterprises set up and operating under the Enterprise Law, including: limited liability companies, joint-stock companies, partnership companies and private companies;

c) Enterprises set up and operating under the Law on Foreign Investment in Vietnam, including: joint-venture enterprises and enterprises with 100% foreign invested capital;

d) Enterprises of political organizations or socio-political organizations;

e) Production and/or business households, cooperative teams;

f) Administrative and non-business agencies, political organizations, socio-political organizations, socio-political-professional organizations, other social organizations and the armed forces, including organizations and units of self-financed administrative and non-business, Party and mass organization agencies, which are licensed to conduct production, business and service activities;

g) Semi-public, people-founded and private establishments in the cultural, medical, education and training, scientific, and physical training and sport services, and other non-business services;

h) Commune, ward and township health stations;

i) Vietnam-based foreign agencies and organizations or international organizations, except cases where otherwise provided for by international treaties which the Socialist Republic of Vietnam has signed or acceded to;

j) Other organizations employing laborers not yet specified at this Point 1.

2. Officials, public servants and employees under the Ordinance on Officials and Public Servants.

3. Laborers and cooperative members who work and enjoy wages under labor contracts of a term of full 3 months or more in cooperatives set up and operating under the Cooperative Law.

4. Laborers who work under labor contracts of a term of under 3 months and, upon the expiry of their labor contracts, continue to work or sign new labor contracts with their units.

5. Laborers specified at Points 1, 2, 3 and 4 of this Section, who are sent on training or practice, or working missions within the country while continuing to enjoy salaries or wages paid by their employing enterprises, agencies or organizations.

II. ENTITLEMENT CONDITIONS, DURATION AND LEVELS

1. Conditions for entitlement:

Laborers who have fully paid social insurance premiums as prescribed shall be entitled to convalescence or health restoration leave when meeting one of the following conditions:

a) Having paid social insurance premiums for full 3 years or more in the units and suffering from health decline;

b) Having not yet recovered after being treated as in-patients or out-patients for illness, labor accidents or occupational diseases;

c) Being female laborers who remain weak after their maternity leaves (including cases of leave due to miscarriage).

2. Duration of convalescence or health restoration leave:

a) Laborers who meet one of three conditions prescribed at Point 1 above shall be entitled to take a convalescence or health restoration leave of between 5 and 10 days in one year (including weekends, public holidays and travel days in cases of staying at concentrated establishments), depending on the laborers’ health decline extent.

b) The duration of convalescence or health restoration leave shall not be subtracted from the laborers’ annual leave and the laborers shall not be entitled to enjoy salaries or wages. In cases where the employers and the laborers agree that during the convalescence or health restoration leave, the laborers are entitled to enjoy salaries or wages, the employers shall have to ensure funding sources for payment thereof.

3. Levels of expenses for convalescence or health restoration leave:

- The level of VND 80,000/day shall apply to those who take convalescence or health restoration leave at concentrated establishments. This level covers expenses for meals, accommodations, travel and ordinary medicaments.

- The level of VND 50,000/day shall apply to those who take convalescence or health restoration leave at home, and female laborers who remain weak after their maternity leave.

Apart from the above-specified levels, the units are encouraged to deduct their welfare funds to further support the laborers during their convalescence or health restoration leave.

III. IMPLEMENTATION ORGANIZATION

1. Responsibilities of the units:

a) In order to realize the regime in a fair and reasonable manner, basing themselves on the conditions prescribed at Point 1, Section II above, the heads of the units shall coordinate with the grassroots trade union executive boards (or the provisional trade union executive boards) in considering and deciding laborers who are eligible for convalescence or health restoration leave as follows:

- To base themselves on the health checks organized annually at the units to determine those who have paid social insurance premiums for full 3 years or more, suffer from health decline and need to take convalescence or health restoration leaves

- To base themselves on medical records and/or opinions of medical treatment establishments to determine those who remain weak after treatment for illness, labor accidents or occupational diseases and need to take convalescence or health restoration leaves.

- For female laborers who remain weak after their maternity (or miscarriage) leaves, the heads of the units shall coordinate with the grassroots trade union executive boards (or the provisional trade union executive boards) and the women affair boards (if any) for consideration and decision.

After determining those who are eligible for convalescence or health restoration leave, the heads of units shall draw up lists of such persons and, together with the trade union executive boards (or the provisional trade union executive boards), organize the convalescence leave for the laborers at their homes or establishments (concentrated) depending on the laborers’ conditions and aspirations.

b) The funding for convalescence or health restoration leave must not exceed 0.6% of the units’ total salary fund actually paid for social insurance for one year, and shall be deducted from the source of 5% of the total salary fund actually paid for social insurance for payment of allowances for sicknesses, maternity or labor accidents as well as occupational diseases. In cases where the units do not use up the deducted funding, the remainder shall be transferred to the subsequent year, when they spend in excess of such funding, the deficits shall not be made up, if the remainder is not enough for a convalescence or health restoration ration as prescribed, the units may deduct their welfare funds to make supplement thereto or transfer it to the subsequent year.

c) Annually, units shall have to make settlement of the funding for convalescence or health restoration leave with the social insurance agencies according to the current provisions.

2. Responsibilities of the social insurance agencies

a) Vietnam Social Insurance shall guide the social insurance agencies of the provinces and centrally-run cities and the social insurance of the army, police and cipher units to advance funding right in the first quarter of the plan year for the units to take initiative in organizing convalescence or heath restoration leave for the laborers.

b) Vietnam Social Insurance shall organize the management, allocation and settlement of convalescence or health restoration funding for the units.

c) Annually, Vietnam Social Insurance shall have to synthesize and report on the situation of realization of the convalescence or health restoration regime in a general report on the implementation of social insurance regime sent to the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance and Vietnam Labor Confederation.

3. The Ministry of Labor, War Invalids and Social Affairs shall coordinate with the Ministry of Finance and Vietnam Labor Confederation in inspecting and supervising the realization of the convalescence or health restoration regime.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect 15 days after its publication in the Official Gazette.

2. To annul Circular No. 11/2001/BLDTBXH of June 11, 2001 of the Ministry of Labor, War Invalids and Social Affairs on the implementation of convalescence and health restoration regime for laborers participating in compulsory social insurance.

Any problems arising in the course of implementation should be reported to the Ministry of Labor, War Invalids and Social Affairs for study and settlement.

Minister of Labor, War Invalids and Social Affairs
NGUYEN THI HANG